KS Tabrez, Managing Director of Dutch-Bangla Bank Limited, speaks at a training course at the bank’s training wing in Dhaka on Saturday. Dutch-Bangla Bank Limited (DBBL) organised a four-week-long foundation training course for its officers. KS Tabrez, Managing Director of the bank, presided over the course at the bank’s training wing in Dhaka on Saturday, said a press release. The aim of the course is to familiarise with participants with concepts, principles, rules, regulations, laws and practices of banking. Tabrez emphasised the need for continuous training for the officers to enrich knowledge on practical banking, development of skills. News:Daily Sun Bangladesh/1-Sep-2013

The state-owned Sonali Bank Limited has re-fixed interest rates for different savings schemes. As per the new rate, depositors will be provided highest interest on savings from 5.75 percent to 7.25 percent. The bank is also providing 5 percent to 6.50 percent interest rates for SND and from 10 percent to 12 percent for fixed deposits. Moreover, customers can deposit funds under various schemes like Double Benefit Scheme, Triple Benefit Scheme, Millionaire Scheme, Sonali Savings Scheme, Education Savings Scheme, Health Savings Scheme, Rural Savings Scheme, Marriage Savings Scheme and Monthly Savings Scheme at different branches of the bank across the country. News:Daily Sun Bangladesh/1-Sep-2013

Private sector credit growth hit a 13-year low of 11.04 per cent in the recently concluded fiscal year 2012-13 due to political instability, higher interest rate on lending and bank scams, said economists and business leaders. According to the Bangladesh Bank data released on Thursday, the credit growth in the private sector slumped to 11.04 per cent in FY 2012-13 compared with that of 19.72 per cent in the FY12. A BB official said that the central bank’s initiative had failed completely to make the private sector vibrant by increasing the target of private sector credit growth for the monetary policy of January-June in 2013. The BB set a credit growth target of 18.50 per cent for the period instead of projected target of 18 per cent amid repeated demand from the business people. The BB data showed that the private sector posted a credit growth of 10.75 per cent in the FY 2000. The credit flow to the private sector had stood at Tk 4,52,925.10 crore in June of 2013 against Tk 4,07,901.60 crore in the same month of 2012. It was Tk 3,40,712.70 crore in June 2011. Dhaka University economics department chairman MA Taslim told New Age on Thursday that credit growth in the private sector declined in FY13 due to recent spates of political violence. The investment environment faced a major setback in the last one year and six months resulting in decline in the credit growth, he said. He said, ‘The BB took contractionary monetary policies consecutively in the period that also discouraged the business people to take loan with a higher interest rate to invest in the productive sector.’ Nobody is now making large-scale investment as they have adopted a ‘wait and see’ approach amid political unrest, he said. He said that credit growth in the private sector would decline further in the months to come if political uncertainty continues. The next year might be more tough for the private sector with unearthing of more bank scams, he said. A BB official said that the central bank had slashed its interest rates on repurchase agreement (repo) and reverse repo by 50 basic points on January 31, 2013 after nearly four years. The BB took the initiative to encourage new investments, particularly in the productive sectors, he said. But the initiative of the central bank has virtually failed as the scheduled banks did not cut down their rate of interest on lending, he said. Former Dhaka Chamber of Commerce and Industry president Asif Ibrahim told New Age that the higher bank rate of interest on lending was one of the main causes of declining trend in the private sector credit growth. The interest rate increased as the BB took a number of contractionary monetary policies in the last two years, he said. He said, ‘The Banking sector has recently faced a number of financial scams. For this reason, the banks have taken cautious policy to sanction and disburse loans which also played a role in declining trend in the credit flow to the private sector.’ The current political instability is also discouraging the businessmen to invest in new industrial units by taking loan, he said. The BB data showed that credit growth in the overall domestic sector slumped to 13.49 per cent in June compared with that of 19.56 per cent in the corresponding month of 2012. The total credit in the domestic sector in June stood at Tk 5,88,281.40 crore against Tk 5,18,335 crore in the same month of 2012. News:New Age Bangladesh/30-Aug-2013

The lion's share of a loan introduced for the development of the Small and Medium Entrepreneurs (SME) are being channelised in other sectors, according to a report by the Bangladesh Bank. Banks and financial institutions had disbursed around Tk 418.49 billion in the SME sector in the first six months of the current year. It is, however, 56.41 percent of loan disbursement target. Of the disbursed amount, Tk 277.7 billion went into the business sub-sector, accounting for 66.36 percent of the total amount. The sum was Tk 201.54 billion, or 62.48 percent of the total loan disbursed, in the same period the previous year. According to the report, the manufacturing sub-sector received Tk 118.69 billion, or 28.36 percent, of this year's loan amount. It received 32.44 percent of loan in the previous year. The service sub-sector got the least loan this year, a meagre 5.28 percent or Tk 22.1 billion. This year, the targeted SME loan disbursement by the banks and financial institutions has been fixed at Tk 741.87 billion. Central bank officials hope to beat the target by the end of the year, as several banks have recently started functioning. Last year, the disbursed loan in the SME sector was around 18 percent higher than the target. Banks and financial institutions loaned out Tk 697.53 billion against a Tk 590.13 billion goal. However, the report says, this year female entrepreneurs got around Tk 14.93 billion of the SME loan, while small entrepreneurs got only Tk 170.86 billion. General Manager of Bangladesh Bank's SME and Special Programmes Division, Sukomol Sinha Chowdhury, said banks face greater risks in trade financing. He said industry entrepreneurs were also getting loans, though in a smaller sums compared to last year. "I hope the industry sector will get expected loans by the end of December. Bangladesh Bank is encouraging banks to provide cluster-based loans," he told bdnews24.com. Chowdhury said although the financing in trades was big, they were expanding their economic activities. "It is having a positive impact on Bangladesh's overall economy," he said. He said the central bank was taking various steps to ensure real entrepreneurs got the loans. Bangladesh Bank's SME Division was also monitoring the quality of loan at the grassroots. "We are also scrutinising whether the real entrepreneurs were getting loans," Chowdhury said. News:The New Nation Bangladesh/30-Aug-2013

Sheikh Abdul Hye Bacchu, Chairman, Board of Directors of BASIC Bank Limited, inaugurates the 63rd branch of the bank at Kochukhet at Dhaka Cantonment area in Dhaka on Thursday. ASIC bank Limited opened its 63rd branch at Kochukhet at Dhaka Cantonment area in Dhaka with fully online facilities. Sheikh Abdul Hye Bacchu, Chairman, Board of Directors of BASIC Bank Limited, inaugurated the branch on Thursday as chief guest, said a press release. Md Ruhul Alam, General Manager, moderated the function while Kazi Faqurul Islam, Managing Director of the bank presided over. Md Anwarul Islam, Anis Ahmed, Fazlus Sobhan, Directors and Kanak Kumar Purkayastha, Abdul Qayum Mohammad Kibria, Deputy Managing Directors of the bank were present at the function. While speaking, Sheikh Abdul Hye Bacchu, Chairman of the bank said the deposit of the customers is hundred percent secured as the bank is fully state-owned. News:Daily Sun Bangladesh/31-Aug-2013